Asked by Rogelio De Santiago on May 26, 2024
Verified
A price discount where the discount is based on the total quantity purchased over a given period,regardless of the number of lots purchased over that period,is
A) customer based.
B) lot size based.
C) supplier based.
D) volume based.
Volume Based
This phrase pertains to pricing, costs, or metrics that change according to the volume of goods produced or sold.
Price Discount
A reduction from the usual cost of an item or service to encourage purchase.
- Examine the effects of pricing schemes and bulk purchase discounts on batch size and approaches to managing inventory.
Verified Answer
WG
William goicoMay 27, 2024
Final Answer :
D
Explanation :
A discount based on the total quantity purchased over a given period is known as a volume-based discount. It is not dependent on the lot size or the customer, but rather on the total volume purchased, hence the name. It is typically offered by suppliers to incentivize larger purchases and to reward consistent customers over time.
Learning Objectives
- Examine the effects of pricing schemes and bulk purchase discounts on batch size and approaches to managing inventory.
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